STAND. COM. REP. NO. 3717

Honolulu, Hawaii

RE: H.B. No. 1946

H.D. 2

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committee on Commerce and Consumer Protection, to which was referred H.B. No. 1946, H.D. 2, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO REGISTRATION OF TIME SHARES,"

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Establish that applications for registration renewals for time share developers, acquisition agents, plan managers, and exchange agents required by section 514E‑10, Hawaii Revised Statutes, shall be deemed approved thirty days after receipt of all required documents, unless the Director of Commerce and Consumer Affairs issues a deficiency letter within that period; and

(2) Establish that any amendment to a required time share plan registration shall be deemed approved by operation of law on the sixtieth day after the amendment is submitted to the Director, unless the Director issues a deficiency letter within that period.

Your Committee received testimony in support of this measure from the American Resort Development Association – Hawaii, Kohala Coast Resort Association, Travel + Leisure, Hilton Grand Vacations, and Marriott Vacations Worldwide Corporation.

Your Committee finds that under existing law, routine renewal filings and minor amendments to timeshare plans can remain pending for years due to administrative backlogs. Your Committee further finds that applicants can experience difficulty obtaining approvals or determining whether their renewal filings have been reviewed, which can create uncertainty for developers, plan managers, and exchange agents, and can also prevent consumers from receiving the most current and accurate disclosure information. This measure would strengthen time share regulation in the State to improve efficiency for developers while retaining appropriate consumer protections.

Your Committee has amended this measure by inserting an effective date of September 1, 2026.

As affirmed by the record of votes of the members of your Committee on Commerce and Consumer Protection that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1946, H.D. 2, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1946, H.D. 2, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Commerce and Consumer Protection,

________________________________

JARRETT KEOHOKALOLE, Chair